United Parcel Service, Inc. Class B (UPS)

Over the past six months, UPS announced higher peak season surcharges for the 2025 holiday shipping period, effective from September 28, 2025, through January 17, 2026, with updates made on August 28, 2025. Third-quarter earnings revealed a 12.3% decrease in U.S. Domestic average daily volume but a 9.8% increase in revenue per piece, reflecting a strategic shift towards "Revenue Quality" over sheer volume, including an intentional reduction in lower-margin volume, particularly from Amazon. UPS also announced a quarterly dividend on November 6, 2025. In April 2025, UPS acquired Andlauer Healthcare Group for $1.6 billion, a move that was highlighted in November 2025 as accelerating its expansion in complex healthcare logistics. However, in September 2025, UPS ended its plans to acquire Mexico's Estafeta due to deal conditions. On October 28, 2025, UPS announced new automation projects and its 2026 outlook, including a preliminary agreement with the United States Postal Service for final-mile delivery solutions. As of January 9, 2026, the stock price had declined by 13.56% compared to January 13, 2025. On January 7, 2026, UPS shares saw a modest gain of 0.18%, amidst mixed institutional investor activity.

Demand for UPS's products and services exhibits clear seasonality, primarily driven by the holiday shipping period, which typically runs from late October/early November through early January. During this time, parcel volumes surge significantly, and UPS implements demand surcharges to manage the increased demand and associated operational complexities. UPS begins planning for the holiday season as early as January each year, continuously monitoring incoming volumes to anticipate demand. A condensed peak season can also lead to expectations of increased in-store shopping, potentially moderating home delivery demand.

United Parcel Service, Inc. (UPS) is a global leader in logistics and package delivery, operating within the industrials sector and the courier and logistics industry. The company provides a comprehensive suite of services, including ground, air, and international shipping, alongside extensive supply chain management solutions. Its major products and services encompass express delivery, freight forwarding, warehousing and distribution, customs brokerage, specialized healthcare logistics, retail services through The UPS Store locations, and digital platforms for customer integration and e-commerce solutions.

UPS has a vast global presence, serving over 220 countries and territories worldwide, with its corporate headquarters in Atlanta, Georgia, U.S. The company maintains a robust international network with major air hubs in the U.S., Germany, China, Hong Kong, and Canada, strategically positioning itself to manage global and regional logistics efficiently.

In the past year, UPS has received numerous accolades for its brand reputation, including rankings in the Axios Harris Poll 100, Morning Consult's Most Trusted Brands, and Newsweek's America's Best of the Best and Most Trustworthy Companies in America lists. Additionally, UPS was recognized by Newsweek as one of America's Greatest Workplaces for Culture, Belonging & Community and one of America's Most Reliable Companies. Comparably awarded UPS for Best Company Perks & Benefits in 2025, and CIO named UPS to its 2025 CIO100 list for digital leadership. Caliber's survey placed UPS among the top three for corporate reputation among the largest U.S. listed companies. However, the announcement in November 2025 of mass layoffs, affecting 48,000 employees, impacted UPS's reputation.

UPS's ownership is predominantly held by institutional investors, who collectively own approximately 72% of the company's shares, including The Vanguard Group Inc., BlackRock, Inc., and State Street Corp. Individual insider ownership is minimal, with current CEO Carol B. Tomé and Executive Vice President Kate Gutmann noted as significant individual shareholders.